Broadcom is near its end-2025 share price at about $350, 29% below its June high, while trailing adjusted earnings per share are roughly 43% above fiscal 2025. A Motley Fool analysis says customer-concentration risk does not justify the discount.
At about $350, Broadcom trades at 36 times trailing adjusted earnings, versus 66 times at its June record close. In its Sept. 2 report, the company raised AI-sales estimates to $58 billion for fiscal 2026 and about $115 billion for fiscal 2027; CEO Hock Tan added a $230 billion target for fiscal 2028. Fiscal Q3 AI-chip sales were $16.7 billion, up 221% year over year, and management projected $21.7 billion for Q4, up 236%.
Customer concentration is rising: Broadcom says its top five end customers accounted for 55% of fiscal Q3 revenue, up from 45% in Q2 and 40% a year earlier. Tan counts six custom-chip customers and expects Anthropic to become the largest in 2027. Broadcom arranged financing with Apollo and Blackstone for Anthropic and OpenAI deployments and agreed to backstop up to about $29 billion of one customer’s lease payments. Tan says the other four can fund their own deployments. The article warns a lab’s funding problems could cause significant fiscal 2027–28 revenue to slip; its author recommends gradual buying.
